The Ultimate Guide to Malaysia's MTEP Visa for Startup Founders & Investors

What is the Malaysia Tech Entrepreneur Programme (MTEP)?

The Malaysia MTEP visa is a temporary residency program designed specifically for foreign business operators. This visa allows entrepreneurs and business owners to reside in Malaysia while they establish and grow their businesses.

With the MTEP visa, holders can take advantage of Malaysia’s vibrant economy, diverse market, and favorable business environment. The program not only enables them to manage their operations from within the country but also offers opportunities for networking and collaboration with local businesses.

MTEP Visa Overview

From Malaysia’s perspective, the MTEP (Malaysia Tech Entrepreneur Program) aims to attract talent and businesses to the country, assisting in its ambition to become a high-tech and global leader in the 21st-century digital economy. To qualify for the MTEP program, businesses must operate within one of the designated target sectors.

Target Sectors: AgriTech, HealthTech, DroneTech, FinTech, Smart City, CleanTech, Cyber Security, Smart Mobility, Artificial Intelligence, Blockchain, Big Data Analytics, Internet of Things

Additionally, the following sectors and niches are not eligible for the Malaysian Tech Entrepreneur Programme:

Non Qualifying Activities: Trading/Marketplace/Reselling Activity, Manufacturing, Provision of Telco Services, Consultancy, Software Integration, Co-Working Spaces, Services Related Activities (design & support/outsourcing/freelancing services)

The program administrators have also clarified the target sector eligibility with the following statement:

If you are bringing in an existing technology or business model into Malaysia, your application should involve reasonable enhancements and additional value-added propositions.

The goal here is for Malaysia to attract investments in advanced technology sectors.

Let’s now take a look at the four categories of the Malaysia Tech Entrepreneurs Programme.

New Tech Entrepreneur

The entry-level category is designed for tech startup entrepreneurs and founders. It allows you to obtain a one-year visa to reside in Malaysia, which can be renewed for an additional year.

This category is only suitable for individuals, as you cannot bring dependents with you to live in Malaysia.

Sponsorship is required to enter the program. This will be provided by one of the Malaysia Digital Hub members or a MTEP recognized partner. It includes providing a personal bond document and either a letter of offer or a tenancy agreement at one of the MTEP hubs.

To be eligible for a renewal for an additional year, you must demonstrate how your business has progressed in Malaysia during the first year and how you have met key business milestones.

Application fees start from RM 2,700.

Experienced Tech Entrepreneur

The next category is intended for businesses that are already established, as well as applicants who have successfully progressed through the New Tech Entrepreneur stream. This visa is valid for five years and can be renewed for an additional five years.

A significant difference between the Experienced Tech and New Tech program streams is that holders of the Experienced Tech visa are permitted to bring their dependents to live in Malaysia. Eligible dependents include immediate family members such as spouses and children. Non-immediate family members can apply for a 12-month social visit pass to temporarily reside in Malaysia.

Another key difference is that spouses of Experienced Tech visa holders are eligible to work in Malaysia.

While visa holders in this category will still need a Malaysian sponsor, the requirements are more relaxed. Business operators are not required to be members of a Malaysian Digital Hub, nor must they maintain a lease at one of these incubator hubs. The sponsor can be any Malaysian citizen aged 21 or older, and they simply need to fill out a declaration form on your behalf.

The application fee for Experienced Tech visa holders starts at RM 5,400.

Tech Investors

The third category of the program is distinct from the first two, as it is not intended for business founders. Instead, it is designed for individuals who have invested in a tech company, which may include non-executive co-founders or venture partners.

To be eligible, a minimum investment of RM 10 million is required, and the company must be registered with Securities Commission Malaysia as a venture.

Eligible tech investors will receive a permit to reside in Malaysia for five years. This permit can be renewed for an additional five years after the initial term expires.

Holders of the Tech Investor visa are also permitted to bring their immediate family members with them to live in Malaysia.

Senior Management

The final category of the Malaysia MTEP program is designated for senior management. This category is intended for individuals who are employed by the business but are not founders and do not hold sufficient equity to qualify for the Tech Investor option.

To be eligible, applicants must hold a C-suite position or lead a department. They must also have a minimum of 7 years of management experience and an annual salary of at least RM 180,000.

Additionally, senior management applicants are permitted to bring their dependents with them.

What do you need to Apply for the Malaysia MTEP Visa?

As part of the application process for the Malaysia Tech Entrepreneurs Programme, applicants will need to provide the following documents:

• Business pitch deck – Information that describes your proposed business idea, market opportunity and plans in securing funding
• Financial resources – Three months of personal bank statements showing a minimum amount of RM 50,000. This can be in any bank, including offshore bank accounts
• Certificate of good conduct – A document issued from the embassy or enforcement agency that shows no criminal record of the applicant in their home country

Applicants can submit their applications online. The estimated wait time for visa approval is approximately four weeks.

Once you receive the approval letter, you will have six months to finalize your affairs in your home country and enter Malaysia under the new visa.

Upon entry to Malaysia, your passport will be endorsed, and the MTEP pass will be issued within one to two weeks.

It is important to note that the MTEP visa has certain restrictions based on nationality; currently, citizens of Israel are excluded from eligibility.

Applications must be submitted in English, as it is one of the official languages of Malaysia.

If your application is rejected, don’t worry – you may appeal and reapply after a waiting period of six months.

Are there any Incorporation Requirements?

Applicants do not need to be incorporated in Malaysia in order to be eligible to apply for the MTEP program.

However, once the MTEP pass is approved and obtained, the applicant is required to incorporate a SDN BHD private company in Malaysia. The incorporation is necessary to proceed with the renewal of the pass after the initial one-year period.

Other Business Visa Options in Malaysia

The Malaysia MTEP pass is an excellent opportunity for entrepreneurs looking to establish their businesses and lives in Malaysia. However, there are other visa options that might be more suitable for some individuals.

One such option is the De Rantau Nomad Pass, a digital nomad visa specifically designed for remote workers and business operators. This visa may be a better choice for those looking to start their journey in Malaysia.

For more serious operators, and businesses looking to focus more on tax minimization, a Labuan company may be what you’re looking for. This one enables you to pay just 3% tax on corporate earnings.

And for business owners who want a similar outcome to the MTEP visa, but in a less structured program setting, foreigners can directly incorporate a private company in Malaysia by establishing an SDN BHD. After setting up the company, they can then apply for a work permit.

Next Steps

Malaysia is increasingly becoming a popular choice for expatriates looking to establish themselves in Southeast Asia. With its quality business infrastructure and attractive tax regime, it is among the top options for our clients. Additionally, the fact that English is widely spoken makes life more convenient for foreigners living here.

For more information about the Malaysia MTEP visa, please contact us here.

If you would like to consult with one of our experts in relocation, incorporation, tax planning, and investing in Asia, please reach out to us here for a private consultation.

Thanks for reading.